New Jersey Ranks as Most-Taxed State

New Jersey taxpayers are stuck with the heaviest burden in state and local taxes, while Alaska taxpayers pay the least, according to a new study.

The Tax Foundation found that New Jersey residents paid 11.8 percent of their income in state and local taxes, while Alaska residents paid just 6.4 percent. The nation as a whole paid 9.7 percent of its income in state and local taxes this year, down from 9.9 percent in 2007, mainly because income grew faster than tax collections between 2007 and 2008.

After New Jersey, New Yorkers were in second place with 11.7 percent of their income taxed by state and local authorities, followed by Connecticut (11.1 percent), Maryland (10.8 percent), Hawaii (10.6 percent), California (10.5 percent), Ohio (10.4 percent), Vermont (10.3 percent), Wisconsin (10.2 percent) and Rhode Island (10.2 percent).

Next to Alaska, Nevada residents pay the least in state and local taxes as a percentage of income at 6.6 percent. That's followed by Wyoming (7.0 percent), Florida (7.4 percent), New Hampshire (7.6 percent), South Dakota (7.9 percent), Tennessee (8.3 percent), Texas (8.4 percent), Louisiana (8.4 percent) and Arizona (8.5 percent).

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